An Empirical Analysis Of The Efficiency And Influencing Factors Of Commercial Banks In China

With the continuous advance of economic globalization and financial liberalization, financial industry plays a significant role not only in the development of national economy but also in the development of world economy. Because commercial banks are an important part of China’s financial industry, the commercial banks must play an important role in the allocation of resources in China. At the same time, the efficiency of commercial banks inevitably have an impact on the efficiency of resources allocation.After the review of some related researches on the efficiency of commercial banks, we introduce the theory of the efficiency of commercial banks and the measurement methods of the efficiency of commercial banks. Through the comparison of different measurement methods, we chose the DEA model as the main method to study the efficiency of commercial banks in China. Based on the data envelopment analysis method, we analyze the technical efficiency and productivity index of14commercial banks in China from2002to2009.The results of analysis are as follows:firstly, the average technical efficiency of commercial banks have a upward trend and the technical efficiency of state-owned banks are lower than that of shareholder-owned banks, which is because low scale efficiency of state-owned banks. Secondly, based on the data of sample banks, we use the Malmquist index model to estimate the productivity index of commercial banks, we find that the productivity index of commercial banks have a rising trend which is because technological progress of commercial banks in China. Thirdly, based on the results of technical efficiency of14commercial banks, we use linear regression model to analyze several important factors which would influence the technical efficiency of commercial banks in China. We find that the management capacity, asset allocation capacity and asset quality have a major impact on the technical efficiency of commercial banks in China.Based on the earlier theoretical analysis and empirical analysis, we point several policy suggestions to improve the efficiency of commercial banks in China. Firstly, we should effectively control the scale expansion and maintain an appropriate scale relative to the level of management. Secondly, we should improve the quality of assets and optimize asset allocation capabilities. Thirdly, we should strengthen ability of cost-control and improve cost management capabilities.